Correlation Between CurrentC Power and FTAI Aviation

Can any of the company-specific risk be diversified away by investing in both CurrentC Power and FTAI Aviation at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CurrentC Power and FTAI Aviation into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CurrentC Power and FTAI Aviation Ltd, you can compare the effects of market volatilities on CurrentC Power and FTAI Aviation and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CurrentC Power with a short position of FTAI Aviation. Check out your portfolio center. Please also check ongoing floating volatility patterns of CurrentC Power and FTAI Aviation.

Diversification Opportunities for CurrentC Power and FTAI Aviation

-0.29

Correlation Coefficient

CurrentC Power  FTAI Aviation

Very good diversification

The 3 months correlation between CurrentC and FTAI is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding CurrentC Power and FTAI Aviation Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTAI Aviation and CurrentC Power is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CurrentC Power are associated (or correlated) with FTAI Aviation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTAI Aviation has no effect on the direction of CurrentC Power i.e., CurrentC Power and FTAI Aviation go up and down completely randomly.

Pair Corralation between CurrentC Power and FTAI Aviation

Given the investment horizon of 90 days CurrentC Power is expected to generate 81.42 times more return on investment than FTAI Aviation. However, CurrentC Power is 81.42 times more volatile than FTAI Aviation Ltd. It trades about 0.19 of its potential returns per unit of risk. FTAI Aviation Ltd is currently generating about 0.08 per unit of risk. If you would invest  3.71  in CurrentC Power on May 20, 2025 and sell it today you would lose (2.71) from holding CurrentC Power or give up 73.05% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

CurrentC Power  vs.  FTAI Aviation Ltd

CurrentC Power

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CurrentC Power are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak fundamental indicators, CurrentC Power showed solid returns over the last few months and may actually be approaching a breakup point.

FTAI Aviation

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in FTAI Aviation Ltd are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy forward indicators, FTAI Aviation is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with CurrentC Power and FTAI Aviation

The main advantage of trading using opposite CurrentC Power and FTAI Aviation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CurrentC Power position performs unexpectedly, FTAI Aviation can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in FTAI Aviation will offset losses from the drop in FTAI Aviation's long position.

The idea behind CurrentC Power and FTAI Aviation Ltd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.